Masdar, a leading renewable energy company and a subsidiary of Abu Dhabi-based Mubadala Investment Company, has signed an agreement with Armenia to develop a 200-megawatt (MW) solar photovoltaic (PV) plant.
The Ayg-1 project will be developed on a design, finance, build, own, and operate (DFBOO) basis and the project company will be 85 per cent owned by Masdar, with the Armenian National Interests Fund, (ANIF, a government owned investment vehicle) holding 15 percent.
It will be located between the Talin and Dashtadem communities of Armenia, in an area where solar radiation is high and land is unusable for agricultural purposes.
In July, the Armenia had announced that Masdar was the winning bidder for the project, having submitted a tariff of $0.0290 per per kilowatt-hour (kWh) in a competitive process.
"The gradual increase of renewable sources in our country's energy system is one of the priorities set by the Government of Armenia. We regard this cooperation with Masdar as an important step towards this goal, as well as towards endorsing Armenia's investment potential," stated Gnel Sanosyan, Minister of Territorial Administration and Infrastructure of Armenia, after signing the government support agreement with Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, at a ceremony in Yeravan.
"The Ayg-1 industrial 200 MW solar plant project is a milestone on this road. We expect the signing of this document to mark the start of a fruitful and lasting cooperation on this and for new upcoming projects," he added.
On completion, the Ayg-1 project will be the largest utility-scale solar plant for the Caucasian nation.
Ahlam Rashid Ahmed AlAbd AlSalami, Chargé d’Affaires of the UAE Embassy, said the agreement will strengthen the already powerful ties between the two countries.
"The UAE and Armenia are united in our commitment to take positive action against climate change, while creating greater economic opportunities and this project marks a key stage in Armenia’s clean energy journey and our hopes for this project to serve as an exemplary success to attract opportunities for Armenia from the UAE," he added.
Anif CEO David Papazian said: "We are glad to welcome Masdar into Armenia's journey towards the decarbonisation of the country's energy supply. Ayg-1 is an ambitious step towards the fulfillment of this goal, and Masdar's expertise and experience in the field is key to the success of the project."
"Ayg-1 is set to become a highly visible investment project, benefitting the country, its citizens and investors, while committing to highest sustainability standards in the industry," he stated.
Masdar CEO Mohamed Jameel Al Ramahi said the deal marks a milestone on Armenia’s clean energy journey, and the development of this project will support the nation’s sustainable economic development.
"We look forward to working with the Armenian National Interests Fund on further opportunities in this field, and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia’s energy mix," he added.-TradeArabia News Service